36 POLICY Special edition 2023 The Company Gross Premiums Investment Profits The Profit when the Investment is Neutralized Total Comprehensive Income Increase in the Production Change in the Profit Harel 4,405 134 -131 3 712 19% -55 The Phoenix 3,717 -117 145 29 562 18% -457 Menorah Holdings 3,712 78 158 236 321 9% -55 Clal Insurance 3,143 -23 -81 -104 324 11% -196 Ayalon 2,225 -43 -1 -43 179 9% 14 Migdal 2,071 -212 -48 -260 199 11% -336 Bituach Yashir 1,876 68 -106 -38 165 10% -202 Shlomo 1,760 41 -210 -169 94 6% -339 Hacshara 1,240 261 -373 -112 63 5% -138 AIG 1,050 -47 -91 -138 115 12% -126 Bituach Haklai 527 1 52 54 30 6% 29 Wesure 475 -18 -5 -23 165 53% -38 Libra 438 -1 -3 -4 134 44% -9 Total 26,637 122 -691 -569 3,063 13% -1,908 The Pool 456 -390 -414 10% -384 The Outcomes in the Insurance Industry in 2022 according to Companies (in millions of NIS) Continued from previous page A Record Production in 2022 is accompanied by a Loss of NIS 569M in part of the insurance companies, which brought to a decrease in the liabilities and an increase of the profits (in some companies the update was done in Q4 2022 and therefore it affected the outcome). A change in the procedure about the allocation of untradable assets, which allows the transfer from time to time of assets that are attributed to other sectors (mostly the healthcare sector) in a manner that will bring with it a maximum exploitation of the excess value subject to the asset’s restriction. That brought to a positive effect in a few companies, and in certain cases it even distorted the outcome (including the claim ratio) in the comprehensive motor insurance. Compulsory Motor Insurance the field of compulsory motor insurance reached in 2022 a production of 5.943 billion NIS and a loss of 198.7 million NIS (in 2021 the production was 5.365 billion NIS and the profit was 144.9 million NIS)- an increase of 577.9 million NIS (10.8%) in the production and an erosion of 343.7 million NIS in the profitability, while transferring from a profit to a loss. The largest company in this field is Harel with a production of 843 million NIS (this year the production of Shirbit was added), while Menorah Mivtachim Holdings was the most profitable (127.5 million NIS). The profits of the Pool were similar to those in 2021 ( a loss of 390 million NIS). Comprehensive Motor Insurance A record production of 9.898 billion NIS, which is accompanied by a record loss of 1.545 billion NIS (the production in 2021 was 8.472 billion NIS and the loss was 22.9 million NIS)- this indicates an increase of 1.426 billion NIS in the production (16.8%) and an increase of about 1.522 billion NIS in the loss, which is mainly an underwriting loss and a small part of it is because of the decrease in the investment profits, which turned 2022 into the worst of all times. There is no doubt that the underwriting changes, and mainly the change upwards in the rates, will start influencing only during 2023 and they will be strengthened towards 2024. Property and Other Insurances The field of property and other insurances is only 23.5% of the general insurance’s production, but its contribution to the profitability is enormous and consistent throughout the years. More than 90% of the production of the property and other insurances belongs to insurances of businesses, homes (and mortgages) and engineering. The production reached in 2022 6.263 billion NIS and it was accompanied by a profit of 513.9 million NIS (in 2021 the production was 5.577 billion NIS and the profit was 715.6 million NIS). This is an increase of 684.9 million NIS in the production (12.3%) and an erosion of 201.7 million NIS in the comprehensive income (28%) that mainly derives from the decrease in the investment profits 2022 Elementary Sector Result Analysis
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